Jenna runs a small boutique in Capitola. She tells one of her suppliers that she is willing to pay $6 for a pair of wool hand warmers and not a dime more
On the basis of this information, what can you conclude about her price elasticity of demand for wool hand warmers?
A) The price elasticity coefficient is 0. B) It is elastic.
C) It is perfectly elastic. D) It is perfectly inelastic.
C
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What is a "cost-of-living" adjustment?
What will be an ideal response?
If the demand curve is perfectly inelastic, then an increase in supply will: a. increase both the price and the quantity exchanged
b. increase the price but result in no change in the quantity exchanged. c. increase the quantity exchanged but result in no change in the price. d. decrease the price but result in no change in the quantity exchanged.
Which of the following is not part of the Federal Reserve System?
a. Treasury Department b. District Federal Reserve Banks c. Federal Open Market Committee d. Branches of District Federal Reserve Banks e. Board of Governors
Which of the following events would definitely cause a decrease in the equilibrium price of cotton shirts?
What will be an ideal response?